You need to identify what is causing the space - probably a simple paragraph
alignment issue - and correct it before running the merge. Selecting the
formatting character display CTRL+* should aid identification.
See also http://www.gmayor.com/mail_merge_labels_with_word_xp.htm

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Graham Mayor - Word MVP
Web site www.gmayor.com
Word MVP web site www.mvps.org/word
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> My first try using Word 2003 for mail merge, and I get a
> space before the first field in every record (mailing
> labels). Why? How do I fix this. It never happened in
> older versions of Word.